Looking for assistance to validate leasing terms recently presented to my mom. She is one of several heirs to a small acreage in Divide County. All the other relatives accepted the terms flat out, but I suggested she have the lease reviewed before she signs. How do I find the right resource for this? Five year lease, 16.67% royalty, $300 Bonus, 11 acres/6 family members. - Thank you!
Tina:
In my opinion, the length of lease is too long, the % royalty is too low and the bonus is also too low. I would look at the current rates and terms and go from there. If needed, a good oilfield consulting in Williston might come in handy.
Good idea - thank you!